Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

As at 30 June 2025, the Group has issued unsecured bonds to the amount of R3.2 billion under its registered ZAR10 billion Domestic Medium Term (DMTN) programme. The gearing ratio has improved to 7.00% (2024: 7.85%), with the increase in equity. This is well below the threshold of 50% prescribed in the National Treasury Borrowing Limit approval. The current ratio decreased to 2.40 times (2024: 3.34 times) as current liabilities increased at a faster rate than current assets. The increase in current assets is mostly driven by the increase in cash and cash equivalents following the maturity of longer-dated term deposit investments. The increase in current liabilities is mainly attributable to the trade payables amounts that is owing to the Department of Water and Sanitation under the Debt Relief Programme as well as the reclassification of interest-bearing borrowings to current liabilities ahead of the RWL26 redemption date within 12 months.

10.Operational performance

2022 Restated Actual

2021 Restated Actual

2025 Actual

2024 Actual

2023 Actual

Volume sold (including consumption accrued to 30 June) Employees at financial year end

Average Ml/day

4 761

4 765

4 717

4 642

4 588

Number

3 572

3 525

3 493

3 437

3 563

The average daily sales volumes decreased slightly by 0.1% to 4761 Ml/d (2024: 4765 Ml/d) as a result of operational constraints due to planned shutdowns for maintenance on key infrastructure that was significantly higher than in prior years. The organisation has continued working on water demand management interventions with the municipalities, creating awareness and efforts to manage demand within the extended abstraction license. Employee headcount remained stable with a marginal increase of 1.33% primarily as a result of slow pace of filling staff vacancies.

11.Going concern

The Board reviewed the Group's performance for the year and in adopting the going concern assumption, considered the robustness of budgets and business results, cash flow projections for the 12-month period ending 30 June 2026, cost- saving opportunities, the cost of capital projects, and the Group's funding plan. Additional supporting information is provided in Note 36 to the consolidated annual financial statements.

12.Events after the reporting date

Commissioning of Station 5A Water Purification Plant

Subsequent to 30 June 2025, the Station 5A Water Purification Plant at the Zuikerbosch Water Treatment Works System was completed and commissioned. This project is part of Rand Water's long-term infrastructure programme to strengthen the consistency and reliability of water supply to its customers.

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Rand Water | Integrated Annual Report 2025